65% of first-time buyers say it's impossible to buy post-Covid

76% of first-time buyers say they feel worried, confused and angered at how Covid-19 has affected their home ownership aspirations, with 65% now saying it’s ‘impossible’ to get on the property ladder, according to new research from Trussle.

Related topics:  Mortgages
Rozi Jones
17th November 2020
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"The onus cannot continue to sit purely on the first-time buyer and their transactional power cannot remain untapped as we head into an uncertain 2021."

The survey found that 72% of first-time buyers in a position to look for a home within the next two years, but 62% have 'admitted defeat', instead opting to save for another year or more.

44% of respondents feel confused by the constantly changing deposit requirements and lender criteria.

Trussle estimates that their difficulty to enter the market is putting £5billion worth of property deposits in limbo.

Miles Robinson, head of mortgages at Trussle, commented: “While it’s encouraging to see the property market remaining open for business with viewings and valuations remaining in place during the second lockdown, it’s disappointing that first-time buyers are struggling to navigate the market.

"One option for first-time buyers is to adapt expectations when it comes to location, exploring more affordable areas and seeing the working from home option as a long term alternative. However, the onus cannot continue to sit purely on the first-time buyer and their transactional power cannot remain untapped as we head into an uncertain 2021.

"The financial impact of the pandemic has meant that lenders are pulling a number of high LTV mortgages. As of this week, there are only 74 mortgage deals available for mortgage applicants with a LTV over 90%. By comparison, this time last year there were over 2,000.

"While lenders are right to be cautious given the economic climate, any sustainable recovery for the property market will need to see activity amongst first time buyers. And, the demand is there. At Trussle, we’ve seen enquiries from first time buyers grow by approximately 230% compared to this time last year.

"We’d like to see lenders beginning to reintroduce higher LTV products that will help first time buyers.”

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